Foreseeable prosperity In the tide of price cuts extending from last year to this year, dealers have become the other hand in the market. Experts predict that after this round of consolidation, when the vehicle's inventory reaches a certain number, the automotive aftermarket will usher in prosperity, and the parts and components factory that plays an important role in the production process will be given a glory in the maintenance market. According to the mature model of the development of the automobile industry in the world, the ratio of the market scale of car sales to the aftermarket is approximately 20:80. “I believe that the auto parts industry is a sunrise industry and there is still great potential in China. Even at a time when auto sales are not very booming, the huge auto repair and maintenance market is enough to support the development of this industry.†Indicated. An example that can confirm this assertion is: After agonizing for a period of time for the car to make less money, some OEMs have found that the original small parts also have a lot of potential to tap. As a result, many auto companies are eyeing the spare parts business. According to foreign media reports recently, GM recently discovered that some of its own specialty products are very popular in the parts and accessories market, thus increasing its efforts to enter this market. GM developed such special products, including some high-end recreational facilities, traditional style oversized wheels and tire kits designed for trucks. Coincidentally, it is reported that the German Volkswagen and the Japanese Mazda Company also plan to develop products similar to GM and use them in the cars of their respective companies. Many problems in the development stage Not long ago, foreign power had reported that China's parallel imports of parts and components hit the international market. Low prices and unstable quality disrupted the market order and made people "love and hate." According to the analysis of the latest American Mercer consulting company, it will take at least 8 years for Chinese auto parts suppliers to catch up with the quality standards of Europe, the United States and Japan. Mercer believes that there is no need to fear that China's low-cost parts will impact the world market. Water Cong Fang analysis pointed out that there are indeed many problems in China's spare parts. A few years ago, the more prominent problem was "counterfeit parts," but with the increasing awareness of intellectual property protection and the increasingly severe control and punishment of domestic and foreign markets, counterfeit parts have shrunk dramatically in recent years. The problem of poor quality parts is still serious. However, the Secretary-General of Water believes that, objectively speaking, the state has not issued comprehensive and detailed quality standards for parts and components. It is also an important reason that the problem of poor quality parts has been difficult to solve for a long time. Apart from 43 types of core components directly related to safety, there are national quality standards. There are no standards for other thousands of spare parts, and the quality is very unstable. “We have entered the automobile society in a leap-forward manner in the absence of adequate preparation and underestimation in all aspects of society. Therefore, we are lagging behind in terms of policies, regulations, industry standards, and personnel reserves. We need to keep up with the situation as soon as possible. The pace of development of this industry." It is still weak to go abroad China’s spare parts import and export has always been a deficit. Although China’s labor costs have a certain comparative advantage over developed countries, the prices of exports have been falling. Due to the relatively small production scale of China's spare parts companies, coupled with high logistics costs and high prices of raw materials, China's current competitive labor costs are insufficient to offset other high costs. In China, the cost of key parts and components such as the transmission system and body is now about 50% higher than that in Europe, America and Japan. The second problem is the lack of a brand. Many domestic spare-parts companies are only doing simple work with sample processing and sample customization. They do not have their own advanced technologies, and they have not invested enough funds to build their own brands. As Zhejiang Wanxiang Group has such products and brands, it is still rare. The third problem is the asymmetry of information, or the information of domestic parts and components companies is too obstructed. It is understood that many orders received by domestic spare parts companies are relayed through Taiwanese middlemen, and some do not even know what brand their car will eventually be installed into. Many SMEs do not have access to international quality systems and certification from foreign automakers. Products are generally only allowed to enter the aftermarket, rather than directly to the automaker. Wall Mount Kitchen Faucet,Single Hole Kitchen Faucet,Best Kitchen Sink Faucets,Single Handle Kitchen Faucet Kaiping City Yibiao Sanitary Ware Co., Ltd. , https://www.aolifaucet.com
Auto parts and components industry is developing at a high speed. According to incomplete statistics, there are no less than 5,000 parts and components manufacturers in Shanghai. In terms of circulation, Shanghai has nearly 20 auto parts cities represented by Dongfang Auto Parts City. There are several large-scale Auto Parts Streets including Weihai Road, Middle Road, and Wuzhong Road. Behind the automobile sales market that has attracted most consumers' attention, the development of the spare parts industry is also a surge.